LowCredify · National Low-Credit Refinance Research

FHA Streamline vs. VA IRRRL: 2026 Cost Comparison

Updated October 2026

This reproducible scenario study compares assumptions, not observed lender offers or borrower outcomes.

Illustrative inputs and calculated payments; activate a column heading to sort
FHA Streamline illustration5806.51706.58112.54000
VA IRRRL illustration6206.51706.5803500

Interpretation

The two program illustrations hold principal, term and rate constant. The assumed monthly insurance produces a $112.50 payment difference, but FHA upfront MIP, a VA funding fee or exemption, financed charges and actual offers can change the comparison. Existing FHA and VA borrowers do not necessarily qualify for the same streamlined route.

Payment and break-even example

With $4,800 transaction costs and $200 comparable monthly savings, simple break-even is 24 months. Financed fees accrue interest; restarting a term may increase lifetime interest. Compare remaining balances at the expected sale date.

Methodology and limitations

All cases use $270,000 principal over 360 months. P&I = P*r/(1-(1+r)^-n). Fees are paid separately, not financed. Rates, insurance and fees are illustrative assumptions, not PMMS quotes or measured credit-score pricing. Taxes, homeowners insurance, upfront program premiums and funding fees are excluded. Score labels do not establish eligibility or isolate a causal score effect. ACS 5-Year describes existing households and is not used as refinance pricing data.

The 2026 FHFA one-unit baseline is $832,750 and FHA floor is $541,287. Confirm county limits and current program rules. These limits are not qualification promises.

Download JSON and methodology · Download CSV

Illustrative monthly principal and interestFour hypothetical $270,000, 30-year refinance scenarios. Not lender quotes. Full assumptions and values accompany the study table.Monthly principal and interest ($)Illustrative assumptions — excludes taxes, insurance and fees$0$500$1000$1500$2000FHA Streamline illustration: $1706.58 monthly P&IFHA Streamline illustration$1706.586.5% · 360 months · $270,000VA IRRRL illustration: $1706.58 monthly P&IVA IRRRL illustration$1706.586.5% · 360 months · $270,000580 score sensitivity case: $1796.32 monthly P&I580 score sensitivity case$1796.327% · 360 months · $270,000620 score sensitivity case: $1706.58 monthly P&I620 score sensitivity case$1706.586.5% · 360 months · $270,000
Standalone payment chart. Values and assumptions are available in the table and downloads.

How we calculate payments

Monthly principal and interest use P × r / (1 − (1 + r)−n), where P is the loan amount, r is the monthly note rate and n is the number of payments. At zero interest, use P / n. Add property taxes, homeowners insurance and applicable mortgage insurance to estimate the full payment. Use parcel-specific taxes and an insurance quote when comparing homes.

APR includes applicable finance charges; use the note rate, not APR, for amortization. Compare Loan Estimates with the CFPB guide.